Stay away from RAD Diversified

[Tom Nagy]

This company is a complete real estate and investment ponzi scheme.  Run by Dutch Mendenhall and Amy Vaughn, they solicit hard money loans (which they do not pay back) and joint venture real estate deals which they also do not pay back.  Not only do they not repay funds, they claim we owe them additional funding for renovations that never actually happen.  You can look for yourself by looking them up on Google.  They have over 100 pending lawsuits against them and counting.  Investors beware!

[Stuart Udis]

@Ryan Blake These investments can be secured, or at least better secured if papered correctly. I believe a large number of RAD investors didn't have a clear understanding of what their investment entailed.  I've lost count of the number of RAD investors who posted in the BiggerPockets forums about their "hard money loans" and then having their distributions "frozen". It appears these investors merely provided unsecured loans to RAD who in turn purportedly made loans, although its unclear if that ever happened. Nevertheless, if the RAD investors  actually had loans  collateralized against property they would be in a much better position. I came across one of these loan agreements online somewhere a few months ago, can't recall where I found it but it was clear in reading the loan agreement there was no language referencing the loan actually encumbering real property, it was just an unsecured loan.